Special Purpose Vehicle

What is the special purpose vehicle?

A Special Purpose Vehicle عربي (SPV), also known as a Special Purpose Entity (SPE) or a Special Purpose Company (SPC), is a legal entity created for a specific and often limited purpose. SPVs are commonly used in various financial and business transactions to achieve specific objectives, manage risks, and facilitate complex financial structures. These entities are typically separate from the sponsoring company or entities that establish them and have their own legal and financial status.

Here are some key characteristics and uses of SPVs:

1.  Limited Purpose.
2. Legal Independence.
3. Risk Management.
4. Asset Securitization.
5. Bankruptcy Remote.